New data highlights a sharp internal migration shift, with Sydney losing over 129,000 residents between 2021 and 2024, the largest population outflow of any Australian capital.

In the last financial year alone, 41,000 people departed Sydney, surpassing the city’s natural population growth.

Housing affordability remains the key driver, with implications for residential mortgage lending across regions.

Melbourne and Darwin also recorded population declines, while Brisbane, Perth, and regional Queensland led the nation in net migration gains.

Brisbane attracted 56,100 new residents, followed closely by regional Queensland (54,900) and Perth (27,500), pointing to increasing housing demand in these more affordable markets.

According to the e61 Institute, escalating housing costs, particularly in Sydney, are pushing Australians in their 30s to consider alternative locations.

However, sustained migration into Brisbane and regional Queensland is beginning to place upward pressure on local property values, which may gradually narrow the affordability gap with Sydney.

This could affect the current migration trend and reshape borrower behaviour over time.

With affordability, demographic shifts, and lifestyle preferences influencing housing decisions, mortgage providers must remain responsive to changing regional dynamics.